Maravi

CEEC funds not for short-term investments, says Lupenga

CEEC funds not for short-term investments, says Lupenga
By Chiwoyu Sinyangwe
Saturday October 11, 2008 [04:00]

THE Citizens Economic Empowerment Commission (CEEC) will not allow people to use funds for short-term speculative investments when dealing in securities at LuSE, empowerment programmes director Ricardo Lupenga has said.

During a Private Sector Development (PSD) organised media breakfast meeting in Lusaka on Thursday, Lupenga said CEEC was currently working on a mechanism to enable citizens accessing funds to buy shares in listed companies on the Lusaka Stock Exchange (LuSE) as a long-term investment.

“We will not allow someone to use CEEC funds to buy shares today and sell tomorrow…we will lock them,” he said.

Lupenga, who asserted that the first results of the CEEC would be seen in the next ten years, also said some provinces might exceed the K10 billion allocations depending on demand.

“There is nothing that stops any province to tap into the K60 billion once they exhaust K10 billion,” he said.

Lupenga explained that the commission had settled for a 12 per cent interest rate on the empowerment funds to make them competitive, considering factors such as inflation and movements in foreign exchange rates.

Lupenga further noted that the robust growth rates recorded in Asian economies have mainly been on account of co-operation from the local entrepreneurs in those countries.

Labels: CEEC

posted by MrK @ 4:04 AM